(18 February – Australia) Credit unions and building societies positioning themselves as the “fifth pillar” of the nation’s finance sector have scored a larger slice of the banking markets, which has not seen in more than a decade.As the war between Australia’s big banks over home loan customers continues, data from the December quarter shows credit unions have secured more than 10 percent of the market, their best result in 12 years.
The result follows increased guarantees for non-bank lenders put in place by the federal government last year as part of banking reforms designed to boost competition.
Chief executive of Abacus, the representative body for credit unions, mutuals and building societies, Louise Petschler said the acceleration in the mutual market was proof customers were voting with their feet.
‘Consumers are clearly seeing that credit unions and building societies are strong alternatives to the big banks and that switching is not as hard as you think,’ she said.
Meanwhile, the NAB has reported a strong response to its aggressive pitch to borrowers of other banks, offering them A$700 to switch.
A spokeswoman said the bank had been flooded with inquiries since launching its ‘we’re breaking up with the other big banks’ campaign to woo customers from ANZ, Westpac/St George and the Commonwealth.